SCHENECTADY — Carver Community Center was notified on Tuesday that a Florida collections agency will start foreclosure proceedings on the nonprofit organization's three buildings after Aug. 30.

But City Council members have decided not to rush to pay off the bill that stems from a long-standing tax situation as the city continues its negotiations with the collections agency to eliminate the foreclosure threat to Carver, which provides services for children in low-income areas, and at least seven other nonprofit entities.

The problem goes back to 2006, when the city began to require nonprofits to put in the necessary paperwork to be declared tax-exempt and some city groups missed the filing deadline.

Many of the organizations eventually had their property taxes forgiven through action by the Legislature. But in the meantime, the city began selling unpaid tax bills, called liens, to American Tax Funding. The liens included tax bills generated on nonprofit properties. As a result, ATF has been threatening to foreclose on the organizations, which include New Creation in Christ Ministries, the Hindu Temple and Bethel AME Church.

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But the city doesn't want to pay the nonprofits' roughly $280,000 bill. Little money is left in the city's unrestricted reserve, and ATF owes the city money on properties it took through foreclosure and then failed to pay taxes.

In recent weeks, it appeared ATF and the city were close to working out a settlement, which likely would have had the city and ATF absolving each other of their monetary obligations while wiping clean the nonprofits' foreclosure issues.

But Monday night, Mayor Gary McCarthy surprised the council by requesting quick approval for payment of Carver's more than $60,000 bill.

City Councilman Carl Erikson, who leads the finance committee, said the body couldn't approve such a measure while the city is in negotiations with ATF. Also, if the city pays off Carver's bill it will have to take over everyone else's liens, he said.

"Once we're presented something from the city's legal counsel, we'll evaluate and act on it," Erikson said about the ATF deal.

Carver Executive Director Guido Iovinella said the city alerted him on Friday that McCarthy would request the money from the council on Monday. But Iovinella said he didn't expect council members to help his organization while others wait for relief. Also, he said ATF's letter is part of its tactic to influence negotiations.

ATF is threatening to shut down Carver's buildings on State Street, Duane Avenue and Craig Street, a move that would end the organizations's alcohol and substance abuse counseling, child care and other services.

"We hope and pray some type of resolution can be reached in the next two weeks," Iovinella said.